Economic Resilience Boosts Market Confidence
The US economy is showing signs of strength, with consumer spending surging 4.2% – the highest pace since late 2021. This uptick has instilled confidence in the market, with about 80% of S&P 500 shares advancing. The equal-weighted version of the index, which gives equal importance to companies like Target Corp. and Nvidia Corp., climbed 1%.
Corporate America Sees Upswing
Industry giants like Tesla Inc., Meta Platforms Inc., and International Business Machines Corp. have expressed upbeat outlooks, contributing to the market’s positive sentiment. Investors are now eagerly awaiting Apple Inc.’s results, due after the closing bell. While some companies have exceeded Wall Street’s expectations, others like Microsoft Corp. and United Parcel Service Inc. have faced selloffs due to disappointing forecasts.
Market Highlights
- The S&P 500 added 0.2%, while the Nasdaq 100 remained largely unchanged.
- The Dow Jones Industrial Average rose 0.3%, and the Russell 2000 of small firms gained 1.2%.
- The yield on 10-year Treasuries was little changed at 4.52%.
- The Bloomberg Dollar Spot Index fell 0.2%, and gold hit all-time highs.
Corporate News
- American Airlines Group Inc. was involved in a deadly air disaster near Washington, with no survivors on board.
- Southwest Airlines Co. warned of rising costs due to labor expenses, despite strong demand for leisure travel.
- United Parcel Service Inc. projected revenue below expectations, citing a lack of rebound in demand for parcel services.
- The US Federal Trade Commission is investigating Uber Technologies Inc. and Lyft Inc. over alleged illegal coordination to limit driver pay in New York City.
Key Events This Week
- US personal income & spending
- PCE inflation
- Employment cost index (Friday)
Global Markets
- The Stoxx Europe 600 rose 0.9%, and the MSCI World Index rose 0.4%.
- The Bloomberg Magnificent 7 Total Return Index fell 0.6%.
- The euro was little changed at $1.0423, while the British pound was little changed at $1.2462.
- The Japanese yen rose 0.5% to 154.37 per dollar.
Cryptocurrencies and Commodities
- Bitcoin rose 1.9% to $105,759.33, and Ether rose 3.9% to $3,263.55.
- West Texas Intermediate crude rose 0.5% to $72.95 a barrel, and spot gold rose 1.2% to $2,793.57 an ounce.
Leave a Reply